PSA Payroll - Ded/Ben: How to refund a payroll deduction

How to refund a payroll deduction

Payroll.png

If you have incorrectly withheld a deduction from an employee paycheck, assuming the employee has cashed the paycheck or has received a direct deposit check, the following example will walk you through how to refund the deductions. 

Below is a copy of a payroll check where two deductions were erroneously withheld, one pre-tax (403b), the other is post-tax (disability insurance). 
show_report_with_deductions.png

The employee Accumulations tab shows the following:
Other_deductions_employee_withheld_tab.png

 

To refund the amounts on the next payroll, put a negative adjustment in for both deductions:
deduction-benefit_in_next_payroll.png

An employee must have at least $1 of gross pay to refund a deduction.

Process payroll as usual.  The employee pay stub will show the negative deductions, and taxable gross will be correct.
next_report_after_backing_out_deductions.png

 

Subsequently, the Employee Accumulations tab will show the following:
final_accums_report.png


Related Articles

How to add a pre-tax retirement benefit

How to add a pre-tax retirement deduction

How to exclude selected deductions or benefits from a paycheck

 

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